UK’s Incoming PM Burnham to Scrap Digital ID Plan, Redirect Funds to Cost of Living

Andy Burnham, set to become Britain’s next Prime Minister on Monday, will abandon a controversial digital identity scheme upon taking office, according to allies. The move signals his intention to prioritise resources for everyday issues such as the rising cost of living.

Burnham, currently Mayor of Greater Manchester and often called the ‘King of the North’, will replace Keir Starmer as leader of the Labour Party and Prime Minister. He is expected to announce his cabinet team on the same day.

The digital ID scheme, initially proposed to combat illegal migration, required all employees to hold a digital identity document. It was criticised as a “fiasco” by a cross-party committee of lawmakers. Former Prime Minister Starmer had already dropped the mandatory requirement in January after public backlash.

A spokesperson for Burnham stated: “All the time and resources that were going to be spent on a national ID scheme will go instead to where it’s most needed, such as helping with the cost of living.” Identity cards were abolished in the UK after World War II, and citizens typically rely on passports and driving licences for identification.

The UK’s Office for Budget Responsibility estimated the ID scheme would cost approximately £1.8 billion ($2.4 billion) from 2026/27 to 2028/29. Opposition Conservative lawmaker Julia Lopez criticised Labour for wasting “millions of pounds on this project” and accused Burnham of pretending to “ride to the rescue.”

Lucy Powell, Labour’s deputy leader and a Burnham ally, acknowledged the savings might be modest but described the move as “one small example of reprioritising.” She told BBC’s Sunday with Laura Kuenssberg programme: “This is an opportunity to reset, to refresh, to look at those things that are perhaps not just taking resources but are taking attention away from government priorities.”

Powell declined to discuss other policy details or cabinet appointments but confirmed Burnham would uphold the previous government’s commitment to new oil and gas drilling in the North Sea. The Labour Party’s 2024 manifesto had pledged no new licences but would honour existing ones, including the Rosebank and Jackdaw fields in Scotland. However, regulators approved these licences only for them to be overturned in 2025 after a legal challenge.

Former US President Donald Trump commented on the potential policy shift, posting on Truth Social that “the people of Aberdeen, in Scotland, are dancing in the streets” because Burnham “has stated that he will be opening up, all the way, the invaluable North Sea Oil.”

On another front, Powell indicated the government has powers to place struggling water companies like Thames Water into “special measures.” She told Sky News: “Let’s see if the government does so.”